TCS has agreed to purchase MHP Management, the consulting arm of Porsche, for a substantial $373 million. This transaction is part of a broader five-year strategic alliance valued at $1.4 billion. The initiative aims to harness AI-driven advancements throughout Porsche’s operations, focusing on the creation of innovative automotive technologies and software-defined mobility solutions. This move significantly bolsters TCS’s presence in the competitive European automotive landscape. BENGALURU: In a mega deal that boosts its manufacturing and AI playbook, TCS will acquire MHP Management, the consulting and technology subsidiary of German sports car maker Porsche, for $373 million. The transaction will also anchor a five-year strategic partnership worth $1.4 billion.The partnership will focus on driving AI-led transformation across Porsche’s engineering, manufacturing, operations, customer experience and enterprise functions, while also developing next-generation automotive technology services and software-defined mobility platforms.Porsche said the decision is part of its “Sportwagenschmiede 35” strategy, which aims to strengthen profitability and cash flow through 2035. The sports car manufacturer said it plans to sharpen its strategic focus by concentrating on its core business.TCS said its Netherlands subsidiary, Tata Consultancy Services Netherlands, approved the acquisition of MHP’s equity shares from Porsche and signed a share purchase agreement for the proposed transaction. The acquisition is subject to regulatory approvals and other conditions and is expected to be completed within three to four months.The partnership with Porsche will serve as an anchor for TCS’s AI transformation strategy and position the Indian IT services company as a strategic consulting and technology partner for Porsche, while creating opportunities to expand its offerings among other automotive and industrial customers in Europe.MHP is a leading automotive and industrial consulting firm in Europe, with capabilities spanning business consulting, digital transformation, artificial intelligence, SAP transformation, manufacturing digitalisation, connected mobility and software-defined mobility. However, MHP will retain its brand and continue to operate as an independent consultancy under its existing name.TCS CEO K Krithivasan said, “As AI, software, and data redefine the automotive industry, this partnership brings together TCS’ capabilities in AI, engineering, technology and business transformation with MHP’s strong automotive consulting expertise. Together, we will industrialize AI at scale for Porsche, accelerating innovation across the value chain to deliver intelligent, software-defined mobility experiences of the future.”Dr. Michael Leiters, CEO of Porsche, said, “Porsche is taking another important step in its strategy to focus resolutely on its core business with the transfer of MHP to Tata Consultancy Services. At the same time, we are gaining a strategic partner in TCS. By combining Porsche’s automotive expertise with TCS’ digital technology and AI capabilities, we will further strengthen our innovative power, increase efficiency, and boost our competitiveness in an increasingly data and software-driven world of mobility.”The company had a turnover of $865 million in calendar 2025 and employs around 4,500 people. Its revenue was $968 million in 2024 and $965 million in 2023. Besides Germany, MHP has operations in Romania, the UK, the US, India and Mexico through its subsidiaries.For TCS, the acquisition provides a marquee automotive client and strengthens its consulting and technology capabilities in the European automotive and industrial sectors, at a time when manufacturers are increasingly investing in AI, software-defined vehicles and digitally connected manufacturing operations.TCS will set up a dedicated AI mobility centre of excellence (CoE) that will focus on industrialising use cases across several core technologies for the mobility sector. The CoE’s role will be to convert AI ideas into secure and scalable solutions that enhance velocity, operational resilience and competitiveness across Porsche’s product and value chain.The TCS-Porsche partnership will also create a platform for long-term value creation, with TCS providing a foundation to scale AI transformation and deliver business outcomes for Porsche’s organisation and its wider mobility ecosystem.
